How to Find a Cocoa Supplier in Colombia
The international cacao market is undergoing one of its most turbulent periods in recent memory. In 2024, both cacao and coffee prices have reached historic highs due to climate disruptions, aging crops, and sociopolitical instability in key producing regions. For buyers, this means greater competition, tighter margins, and the urgent need to secure dependable suppliers.
For many importers, Colombia represents an appealing origin: the country produces fine flavor cacao, grown by smallholders across various regions, and known for its genetic diversity and unique sensory profiles. However, sourcing cacao from Colombia is not as straightforward as many international buyers might expect.
The Colombian Context: A Seller’s Market
In Colombia, a significant share of the cacao harvest is absorbed by domestic actors, such as the Federación Nacional de Cacaoteros (Fedecacao) and large industrial processors like Nacional de Chocolates. These organizations often purchase directly from producers at competitive prices, leaving limited volumes available for private exporters.
As a result, exporters must compete fiercely to secure cacao beans from growers. One of the most common strategies is to offer advance payments—sometimes up to 100% of the invoice—to ensure delivery. This practice is driven not by speculation, but by necessity: if the exporter does not prepay the producer, the beans are likely to be bought by a local competitor with cash in hand.
This reality can be jarring for international buyers used to working with 30- or 60-day payment terms, letters of credit, or cost-insurance-freight (CIF) agreements. But in Colombia’s cacao trade, those conditions are largely unworkable for small exporters.
The Risks and Realities of Doing Business
Even with advance payments, exporters are not guaranteed that producers will fulfill their commitments. Cases occur where farmers, tempted by last-minute price hikes, return the prepayment and sell to the highest bidder. This reflects the highly informal and volatile nature of the supply chain—one where trust is essential but not always easy to establish.
In this environment, buyers must adapt their expectations and understand that:
- Advance payments are often the only viable option to secure cacao.
- Exporters operate in a low-margin, high-risk environment without financial buffers.
- Negotiations must be based on mutual trust, often built over time.
How to Mitigate Risk and Build Strong Partnerships
If you are a chocolatier or cacao importer seeking to source from Colombia, here are some best practices:
- Work with traceable supply chains and demand transparency in sourcing.
- Visit farms and exporters whenever possible to understand their processes.
- Consider staggered payment structures that start small and scale with trust.
- Establish long-term buying commitments to gain priority in future harvests.
- Collaborate with exporters who work directly with producers or cooperatives.
Conclusion
Finding a reliable cacao supplier in Colombia requires more than a good price and a purchase order. It demands patience, flexibility, and a willingness to understand the dynamics of a local market shaped by scarcity, competition, and cultural differences in doing business.
The cacao trade in Colombia does not follow the same rules as global commodity markets. But for those who are willing to work closely with producers and exporters, it offers the opportunity to access some of the most unique and flavorful cacao in the world—grown under conditions that require courage, commitment, and collaboration.